Loss assessment on Condo Policies is becoming increasingly more important.  

 Why?  Because the wind and hail deductibles for the HOA’s master policy have gone to percentages and that is going to mean there is not enough money in their reserves to cover a hail loss.  So the HOA would Assess the owners and the owners HO 6 condo policies would pick it up.   Typically the basic structural coverage of a standard HO 6 policy only cover building and contents. Generally the structural coverage is just $1,000. Most owners are legally responsible for much more than this amount.   When you live in a HOA, losses can be association wide. Let’s say a lawsuit for a serious injury ends up in a judgement that far exceeds the associations general liability coverage limits, the excess is assessed to all unit owners to cover the cost.   This is also true when there are insurance claims that end up in a loss caused my unit owner’s negligence.   HO 6 policies come with only $1,000 of loss assessment coverage under the increased loss assessment policy endorsements, even if the total coverage is increased.   This is what we recommend: The unendorsed HO 6 policy provides named pers coverage for both structural claims and personal property claims.  I recommend changing the perils covered to special perils for structural claims and personal property claims. This is important in a HOA situation because the owner of the unit has no control over exterior maintenance.   What if you you lived in a unit that had an older roof and it leaked water onto your units carpet, hardwood floor, cabinet, furniture, piano, clothing, etc. causing major damage? You would have no coverage at all unless your policy had upgraded perils covered. The HOA insures the majority of the structure of each unit but the unit owner is responsible for insuring just the part of the structural interior not covered by the master policy, as noted in your HOA documentation papers (typically a “declaration”) and any state laws.   Normally this declaration will say something to the effect that “the unit owner is responsible for everything inside the bare walls and bare floor of the unit”.  Below you’ll see I have listed the things you’d be responsible for insuring the following things and their sample replacement cost installed:   Carpeting, hardwood floors, ceramic tile, or any other flooring $25,000

• Wall coverings $5,000
• Lighting fixtures $5,000
• Plumbing fixtures (toilets, tubs, etc)$12,000
• Built-in appliances $5,000
• Kitchen cabinets $20,000
• Owner installed improvements $30,000
• Previous owner improvements $20,000

As you can see the estimated replacement cost installed is $122,000. The HO 6 basic coverage of $1,000 doesn’t even put a dent in that.   Keeping you protected,   Rick   All Access Insurance in Littleton, CO,  who represents multiple insurance companies as a “Broker” and provides products for auto, home,  commercial,  workers compensation, and much more!   Call us today for a free quote at (303) 932-1700